After dip, onion export shows recovery in December

The Dutch onion export showed significant recovery in early December after the dip in the last week of November. The major difference lies in the export to Senegal. In the first week of December, a total of 12,000 tons of onions were shipped to Senegal according to preliminary figures from KCB and GroentenFruit Huis. The week before, this amount was just over 3,200 tons. So it makes a considerable difference whether a shipment counts in the first or the second week. A few days delay of a shipment has a large impact on the weekly figures. On average, around 7,500 tons of onions were exported to Senegal at the end of November/beginning of December. This aligns with the estimates that packers and exporters had for the exports during that period. They predicted weekly exports just above or just below 30,000 tons. In the last week of November, the total export of Dutch onions was stuck at 24,637 tons. This was disappointing. Today, the figure for the first week of December has been announced. This comes out to 34,043 tons. If you average both outcomes, you arrive at just under 30,000 tons. And that fits the picture that was outlined earlier. In weeks 46 and 47, Senegal was flooded with Dutch onions. During this short period, more than 32,000 tons of onions were delivered at the quay of Dakar. The logistical chain there could not handle this, and as a result, pallets were left waiting for further transport. Buyers hit the brakes, and the Dutch sellers clearly noticed this. This situation also had significant consequences for the price formation of onions in the Netherlands. Instead of prices that would slowly but surely rise with the approaching holiday season of Christmas, price pressure emerged. And this had a paralyzing effect on the market. Although the onions are far from expensive, buyers still became fearful that they would end up paying too much. Buying now and finding out tomorrow that it can be cheaper; that does not suit them. This situation has resulted in lost sales opportunities. In all haste to avoid losing market share, the Dutch sellers have overextended themselves. Due to the over-saturation of the African market, the Dutch onion sector has severely hurt itself. As a result, a significant amount of sales volume and margin has been lost in the chain. Particularly the latter must be very troubling for the sellers. In hindsight, it is easy to talk. The prevailing thought was that the onion hunger in Africa could not be satisfied this year due to the highly competitive prices. However, it has become apparent that there is indeed a limit to the absorption capacity of the main markets for Dutch onions. That limit is incredibly high, but due to the enormous capacity in processing and logistics from the Netherlands, that level has been reached nonetheless. With all the consequences that follow.